Chris,
Phase 2 is conducted in a large room where all candidates are seated. The presentation is delivered, then you come out while the room is reconfigured. You then go back in and take a seat at a terminal with your back to everyone else.
The maths test is done on a piece of paper. The PILAPT Test is done on the computer terminal at your station. There are no distractions as you can't see anyone when you're looking at the screen.
The invigilator is present in the room during the test, but again is not a distraction. Certainly, there was no breath felt on my neck although others may have been disturbed by my heavy breathing as I squeezed an M1 grunt during a barrel roll and loop on the "Boxes" test.
The atmosphere is as relaxed as it can get, in my experience. Settle yourself with the thought that you are not competing with anyone else in the room. It's all about you and the line CTC have drawn in the sand.
PS - Requesting a flyby then singing "Great Balls of Fire" on the deviation test is a no no.